Hospitals are getting paid faster, according to Zimmerman & Associates, a Hales Corners, Wis.-based firm that tracks accounts receivable trends.
The gross days revenues outstanding dropped to 65.5 days in the fourth quarter of 1993. That's a 3% drop from the third quarter, when the number of days outstanding had reached a six-year low, according to Zimmerman.
The percentage of revenue written off as bad debt or charity care also decreased to 5% from 5.2%, the firm said.
Hospitals are likely to keep improving their accounts receivable performance this year, said David Zimmerman, president and chief executive officer of Zimmerman & Associates. "The hospitals that don't strive to get days and bad debt under control will pay the price in the coming years," he said.
In a related report, Zimmerman said salaries in the business office are improving. The average salary for business office employees increased 9% in 1993.
Business office director salaries rose 7% to an average of $51,298. Clerks saw their pay increase 11% in 1993 to an average of $16,785.